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Freeing up food cargo: Romanian route provides a way out for Ukraine grain

Food Ingredients First 2023-08-18
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Tag: food trade

The ship carries 30,000 metric tons of cargo, including foodstuffs in 2,114 containers, according to Oleksandr Kubrakov, Ukraine’s Deputy Prime Minister.

The Joseph Schulte, a ship sailing under Hong Kong’s flag, has defied Russian threats issued last month that endangered civilian cargo ships, as the Russian Defense Ministry considers ships sailing around Ukrainian ports “as potential carriers of military cargo.

The Black Sea around Ukraine is also dangerous due to sea mines along shipping routes.

Ukraine announces humanitarian corridor
The Ukrainian navy announced last week that the opening of a humanitarian corridor to release cargo ships that have been effectively trapped in the country’s ports since the start of the war.

“The indicated routes will primarily be used for civilian ships that have been in the Ukrainian ports of Chornomorsk, Odesa and Pivdenny since the beginning of the full-scale invasion of Russia on February 24, 2022.”

“Vessels whose owners/captains officially confirm that they are ready to sail in the current conditions will be allowed to pass through the routes.”

The Ukrainian navy underscores its right to free commercial navigation under international maritime law.

Reaching safe NATO waters
The transport minister of Romania, Sorin Grindeanu, says that it will double the amount of all Ukrainian grain exports and the country will boost infrastructure projects around the Ukrainian-Romanian Sulina canal.

This would increase the transit capacity to four million metric tons monthly. 

Containers.The Ukrainian navy that the opening of a humanitarian corridor to release cargo ships that have been effectively trapped in the country’s ports since the start of the war.“The Sulina Canal is the only viable waterway for these transports and therefore, it is important to optimize the capacity of this route,” Grindeanu highlights.

“The US will also contribute to improving critical infrastructure for rail and road transportation and transshipment, expanding access to train car parts and railway assembly lines, and assisting the private sector along the Danube in enhancing export capacity,” said the US Embassy in Ukraine last week.

“To further support regional efforts, the US pledged financial assistance to Ukraine’s neighbors to acquire vessels such as pilot boats and to facilitate cross-border transshipment and transit.”

once in Romanian waters, the cargo is considered safe, as any attack on NATO waters could trigger Article 5 and be considered an attack against all NATO members.

The problem is reaching Romania from Ukraine and vice versa.

Ukrainian ports under fire
Russia is drone striking the Odesa region, including its Danube river ports. Oleg Kiper, Odesa’s governor, announced that Russia struck Ukraine’s granaries and warehouses in the area with drones for the third time in July.

Earlier this month, Ukraine reported that 40,000 tons of grain destined for African countries, China and Israel, were damaged in one of the most recent attacks at the Ukrainian port facilities of Izmail, very close to the Romanian border.

International wheat prices rose 1.6% in July, its first month-on-month increase in nine months, “mainly driven” by the end of the Black Sea Grain Initiative, according to the UN’s FAO.

The Black Sea Grain Initiative collapsed in July, as Russia said the deal disregarded the country’s demands. Before the war, maritime shipments through the Black Sea comprised over 90% of Ukraine’s agricultural exports, as sea routes allow for cheaper and logistically easier exports.

Meanwhile, the EC reassured it can expand alternative road routes for Ukraine’s grain exports and absorb the blow of the collapse of the deal.

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